Composing an accurate budget and forecast for a property is critical to ensuring that your investment is both protected and optimized. A well thought out budget can be crucial when making decisions about maintenance, upgrades and rental rates. However, the time and effort it takes to create this can be intimidating without the market knowledge and facilities information to properly create a solid budget.
Here are some essential items we consider when creating budgets for our clients:
- Identify any shifts or changes in the property market that will have impact.
- Income for the property over the forthcoming financial year should be assessed and estimated.
- Expenditure analysis which will require a financial history of the property over the last few years.
- Property performance will change seasonally in income based on the rental escalations in property leases, and the expected vacancies.
- Normal property expenditure versus capital works expenditure. Maintenance assessment for planning for the major facilities items that are likely to need replacement during the upcoming financial year.
- Landlord costs and expenses to be incurred such as legal costs, leasing commissions, incentives, and landlord Capital Works.